Trying to save?... Just call the Union (From Penarth Times)

Trying to save?... Just call the Union

DID YOU know that there is a friendly and approachable way of saving money in your area?

The Penarth Credit Union (PCU) was set up in September 1996. A national scheme with a community base, it's run mostly by volunteers who have been trained to help people save money in a way that they can afford.

And after 13 weeks of saving with them, you can take out a loan based on the amount of money you have accrued at the Credit Union.

Sometimes seen as a 'poor man's bank', the workers at the CU are keen to show just how useful it can be to everyone.

Bill Hudson from Penarth Credit Union said: "For obvious reasons I can't divulge who our members are, but we have loads of people in really good jobs, like councillors and politicians, who save with us. There is no stigma attached."

It is incredibly easy to join. It costs just £1 to become a member or shareholder, which is a one-off payment. You can join at any age, but have to be over 18 to take out a loan. It's then down to the individual how much they save, which could be as little as 50 pence a week.

There is soon going to be a shop opening in Glebe Street, Penarth where people can call into to make their weekly savings. Members can set up direct debits from bank or building society accounts straight into the CU.

Bill went on: "We are a professional organisation, but we are always friendly and welcoming and offer our members the personal touch."

The Credit Union offer an amazing one percent interest on their loans. No matter what is happening to the country's economy, the CU have a legal obligation to keep their rate low.

And because you borrow against your record with the Credit Union, it doesn't matter if you have a County Court Judgements, or if your credit rating has been damaged in the past.

"Very often, people who are refused loans from mainstream financial organisations come to us. We make sure that you do not get yourself further into debt when you save with us," said Bill.

The idea works on a co-operative basis. The more members that join the CU means they have more money to lend. Each shareholder can borrow up to 5 percent of each Credit Unions assets. And because members know that they are in effect borrowing each others money, they tend to make sure their payments are made on time.

Bill added: "Like any financial organisation, we do have some bad debts. But they are kept to a minimum for main two reasons. One is that people know the loans they take out is based on other people's savings. And the other is that we have to go through rigorous training before we are allowed to form a Credit Union. We sit down and discuss what each individual can afford to pay back. And as they pay back their loan, they also put a little money back into their accounts, so that they are continuing to save. With one percent interest, it is very often better to come to us and save for a smaller loan than to go to a bigger bank."

The CU starts off as a steering group, and the volunteers get training in many legal fields. They work towards a high level of achievements, ready for a visit from the Registry of Friendly Societies. The group will then have to meet certain standards in their roles and responsibilities before they are registered as a Credit Union. Bill said: "The Register of Friendly Societies has to give their approval to the group before we can register as a Credit Union.

"We work for many months getting things right. But we don't mind that. It just ensures that our team runs like clockwork before we set about helping people save for anything they like."

The government is recognising the work of CUs far more. As such, the regulations are getting stricter. There has been an increase in standards and expectations. And starting in July 2002, the Financial Services Authority will take over the regulation of all Credit Unions.

But the best news of all for the Credit Union in Penarth is that they officially merge with Barry on October 1, to form the Vale of Glamorgan Credit Union. This means their membership will combine and their lending capacity will increase.

For information on the Credit Union, telephone 029 2055 4955.